With respect to economic freedom, which of the following is TRUE? A. Three out o
ID: 1129376 • Letter: W
Question
With respect to economic freedom, which of the following is TRUE?
A. Three out of four people live in nations with governments that grant residents high degrees of economic freedom.
B. About three dozen nations with governments unwilling to grant much in the way of economic freedom are home to two minus thirds of the world's population. Even so, these countries produce over 50 percent of the world's output.
C. As economic freedom increases, so does a nation's prospects for economic growth.
D. Where governments do not grant residents a high degree of economic freedom, economic growth rates tend to be above the annual average for the world's nations.
Explanation / Answer
Option C. As economic freedom increases, so does a nation's prospects for economic growth.
Economic freedom refers to the freedome to operate without govt intervention. It largely rests on the principle of free markets. As economic freedom improves, it is expected that nation's prospects for economic growth will improve.